Calls for energy price cuts

Energy companies have been urged to cut their prices to reflect the collapse in wholesale costs.

The call came after one of the smallest players in the market, Flogas, said it would reduce the price of gas for households by 2.5pc, with effect from the start of next month.

The reduction will save householders around €20 a year.

There is huge scope for more cuts across the board, given wholesale gas prices are down 23pc in the past year, according to Simon Moynihan of price comparison site Bonkers.ie.

He said there had been a number of small reductions in prices. He said the newest player in the market, Energia, had just introduced discounts of up to 26pc for those prepared to switch to it for electricity, gas or both fuels.

“If you do not switch from your current supplier you may get a 2pc to 2.5pc reduction in costs, but if you want to get discounts of up to 26pc then you need to move provider,” Mr Moynihan said.

Electric Ireland has just cut its gas price by 2.5pc, while its electricity prices fell last November. Airtricity will reduce the cost of its electricity from Monday.